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Festivalgoers attend the 2018 Coachella Valley Music And Arts Festival on April 13, 2018 in Indio, California. (Photo by Christopher Polk/Getty Images for Coachella)

The parent company of the Coachella Festival, which began today in Indio, California and will run for two weekends, has been sued by Portland music festival Soul’d Out over a clause that allegedly gives Coachella a seasonal monopoly on West Coast live music. The clause in question, known as the “radius clause,” prevents artists from playing at other festivals or “themed events” within a 1,300 mile radius of Coachella from December to May.

Representatives from GoldenVoice, Coachella’s parent company, argue that radius clauses are common in the music industry in order to ensure the quality and singularity of the experience. In a statement to
Celebrity Access
, GoldenVoice says that “Promoters take great risk and spend huge sums to produce marquee festivals,” and that the clause is “crucial to our ability to continue offering fans the unrivaled experience for which Coachella has become known.”

However, Soul’d Out’s lawsuit also alleges that GoldenVoice only selectively enforces this clause, allowing artists to break contract for shows promoted by Coachella’s festival owners AEG Live. One example is Jay-Z, who played an AEG event at the Staples Center in Los Angeles right before headlining Coachella in 2010.

Due to the radius clause, Soul’d Out – which takes place over 1,000 miles from Indio and begins on April 18th – was unable to recruit artists such as SZA and Daniel Caesar, which would have likely provided supplementary business and exposure for the much smaller scale Festival. Lawyers for the Festival’s founders Nicholas Harris and Haytham Abdulhadi have called Coachella’s radius clause “
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,” arguing that the restrictive performer contracts give an already-successful festival an unfair monopoly on the live music business in the region. The lawsuit also alleges that the radius in question appears to have grown in recent years, and that previous years’ contracts did not include Oregon and Washington.

Although Coachella is the only major festival that has been recently taken to court about this clause, research shows that similar contracts put forth by other large-scale festivals could have a significant negative impact on regional venues. One study, cited by Soul’d Out’s suit, shows that
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have similar effects in their respective areas and timeframes. Therefore, this case could set precedence if it moves forward and a judge determines there is an antitrust violation.

Coachella takes place April 13-15 and 20-22 this year and features headliners including The Weeknd, Beyonce, Eminem, and SZA, drawing a per-day attendance rate close to 100,000 people. Soul’d Out runs from April 18-22, featuring artists including Erykah Badu, Wyclef Jean, and De La Soul.